Oil Prices Rise 36% Amid U.S.-Iran Conflict, Market Enters Backwardation

AI Summary

The oil market has shown increased volatility due to the ongoing U.S.-Iran conflict, with Brent crude futures trading around $99 per barrel, up 36% since February 28, while U.S. West Texas Intermediate futures are at $87.76, reflecting a 30% increase from pre-war levels. Analysts indicate the market is in a state of backwardation, meaning prices for immediate deliveries are higher than those for future contracts, suggesting the current price rise may be temporary. Recent reports of a 15-point peace plan from the White House have not completely alleviated concerns, as mixed messages continue to emerge from both governments and geopolitical tensions persist in the Strait of Hormuz.